(a) Every person claiming benefits under this Act (or the
representative) shall promptly notify the employer and the district
director when:
(1) A claim is made that someone other than the employer or person
or persons in its employ, is liable in damages to the claimant because
of the injury or death and identify such party by name and address.
(2) Legal action is instituted by the claimant or the representative
against some person or party other than the employer or a person or
persons in his employ, on the ground that such other person is liable in
damages to the claimant on account of the compensable injury and/or
death; specify the
amount of damages claimed and identify the person or party by name and
address.
(3) Any settlement, compromise or any adjudication of such claim has
been effected and report the terms, conditions and amounts of such
resolution of claim.
(b) Where the claim or legal action instituted against a third party
results in a settlement agreement which is for an amount less than the
compensation to which a person would be entitled under this Act, the
person (or the person's representative) must obtain the prior, written
approval of the settlement from the employer and the employer's carrier
before the settlement is executed. Failure to do so relieves the
employer and/or carrier of liability for compensation described in
section 33(f) of Act, 33 U.S.C. 933(f) and for medical benefits
otherwise due under section 7 of the Act, 33 U.S.C. 907, regardless of
whether the employer or carrier has made payments of acknowledged
entitlement to benefits under the Act. The approval shall be on a form
provided by the Director and filed, within thirty days after the
settlement is entered into, with the district director who has
jurisdiction in the district where the injury occurred.
[42 FR 45303, Sept. 9, 1977, as amended at 50 FR 400, Jan. 3, 1985; 51
FR 4284, Feb. 3, 1986]
